Sensex Reclaims 83,000, Nifty Gains for 3rd Straight Session; Mid-Cap & Small-Cap Extend Winning Streak

Market Update at 4:00 PM: On Thursday, September 18, 2025, Indian equity benchmark indices closed in positive territory, driven by strong momentum. The Nifty 50 rose by 93.35 points, or 0.37 per cent, to 25,423, while the Sensex jumped 320.25 points, or 0.39 per cent, to 83,013.96. The gains followed the US Federal Reserve’s interest rate cut, marking the first policy easing since December, which boosted investor sentiment.

The IT sector, benefiting from its significant US revenue exposure, gained up to 0.83 per cent, with all constituent stocks closing higher. Overall, seven out of 11 key sectoral indices ended in positive territory. Broader market indices like Nifty Midcap 100 and Smallcap 100 also closed higher, extending their winning streak to 10 consecutive sessions.

Among individual stocks, MOIL rose 0.85 per cent after completing its first manganese ore export to Indonesia. Cochin Shipyard climbed 0.89 per cent following a Rs 200 crore (USD 22.74 million) contract secured from state-owned energy explorer ONGC.

The Nifty Pharma index emerged as the top gainer of the day, rising 1.5 per cent, with 16 out of 20 constituents advancing. On the contrary, Nifty Energy declined 0.35 per cent, as 26 of its 40 constituents ended lower.

HDFC Bank, Infosys, and Eternal contributed the most to index gains, adding 31.97 points, 14.86 points, and 14.72 points, respectively. On the downside, Tata Motors, Coal India, and Bajaj Finance weighed on the index, dragging it by 3.06 points, 3.38 points, and 7.86 points, respectively.

The broader market indices ended in green, with the Midcap 100 index up 0.38 per cent and the Smallcap 100 rising 0.29 per cent. Market breadth was positive, with 1,606 advancing stocks, 1,426 declining, and 102 unchanged out of 3,134 stocks traded on the NSE.

A total of 78 stocks touched their 52-week highs, while 20 stocks hit their 52-week lows. Additionally, 95 stocks were locked in upper circuits and 43 in lower circuits.

Market Update at 12:30 PM: Indian equity benchmarks opened higher on Thursday after the US Federal Reserve announced a rate cut of 25 basis points, lowering its policy rate to the range of 4–4.25 per cent. The move boosted global investor sentiment, leading to gains across Large-Cap and Mid-Cap indices.

The BSE Sensex opened 415.21 points higher at 83,108.92, reclaiming the 83,000 mark. The index later traded at 82,975, up 282 points or 0.34 per cent by 12:00 PM. Similarly, the NSE Nifty50 opened 110.8 points higher at 25,441.05 and was seen trading at 25,415, up 85.30 points or 0.34 per cent.

On the BSE, Infosys, HCLTech and Tech Mahindra were the Top Gainers, reflecting renewed buying in IT stocks after recent Quarterly Results showed resilience in earnings. On the other hand, Bajaj Finserv, Bajaj Finance and Tata Steel emerged as the top drags.

Broader markets also moved higher, with the Nifty MidCap 100 and Nifty SmallCap 100 indices gaining 0.3 per cent each. The performance highlights continued investor interest in Small-Cap and mid-cap segments, where multibagger opportunities are often spotted.

Sectorally, the Nifty IT index led the rally, up over 1 per cent, while all other sectoral indices traded in green except Nifty Metal, which declined slightly.

Market Update at 10:30 AM: Indian equities traded higher on Thursday, supported by gains in information technology stocks, after the U.S. Federal Reserve reduced interest rates by 0.25 percentage point to strengthen the labour market in the world’s largest economy.

The Nifty 50 index rose 0.36 per cent to 25,420.85, while the BSE Sensex climbed 0.42 per cent to 83,048.35 as of 09:51 a.m. IST. Market participation remained broad, with 14 out of 16 sectors advancing. The IT index , which derives a large share of revenue from the U.S., gained as much as 1.3 per cent.

Meanwhile, small-cap and mid-cap indices each advanced by about 0.4 per cent, extending their positive momentum. Market experts noted that lower U.S. interest rates often make emerging markets like India more attractive for foreign portfolio investors (FPIs), potentially boosting liquidity for large-cap, mid-cap, and small-cap stocks.

The Fed’s decision marks its first rate cut this year, but policymakers signalled a cautious stance on the pace of future moves. Investors now await domestic quarterly results, potential dividend announcements, and updates on IPO activity to gauge market direction further.

Pre-Market Update at 7:30 AM: On Thursday, September 18, Indian equity benchmark indices Sensex and Nifty 50 are expected to open higher, extending the previous day’s rally. The momentum comes after the US Federal Reserve announced a 25-basis-point cut, bringing its benchmark rate to 4 per cent–4.25 per cent. At 7:17 AM, the GIFT Nifty traded near 25,500, up by 77 points, indicating a positive start for Indian markets.

The Federal Reserve highlighted labour market stress as the main factor behind the rate cut and signalled that future moves would depend on economic data. Fed Chair Jerome Powell stressed that employment risks have become more significant than inflation, though inflation monitoring continues. The Fed projected two more quarter-point cuts later this year. US markets reacted cautiously, with the Dow Jones Industrial Average gaining 0.57 per cent to 46,018.32, while the S&P 500 and Nasdaq Composite slipped 0.10 per cent and 0.32 per cent, respectively.

On Wednesday, September 17, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 308.32 crore. In contrast, Domestic Institutional Investors (DIIs) continued their buying streak, investing Rs 2,293.53 crore. Notably, DIIs have been net buyers for 17 consecutive sessions, supporting large-cap and mid-cap stocks despite global uncertainty.

On Wednesday, the NSE Nifty 50 closed 0.36 per cent higher at 25,330.10, its strongest close since June 7, while the S&P BSE Sensex gained 313 points, or 0.38 per cent, to settle at 82,694. The Bank Nifty also advanced 0.63 per cent to 55,493.30. Sector-wise, IT, Auto, and Oil & Gas stocks gained, whereas metals declined. Broader markets were mixed, with mid-cap indices posting marginal gains and small-cap stocks rising up to 0.68 per cent, continuing their momentum and attracting interest from retail investors.

Asian markets traded mostly higher on Thursday, supported by the Fed decision. Meanwhile, China’s central bank maintained the rate of seven-day reverse repos at 1.40 per cent but injected 487 billion yuan (USD 68.56 billion) into the system through open market operations.

Gold prices gained 0.3 per cent in the Asian session to USD 3,668.57/oz, supported by expectations of more rate cuts, which enhance the appeal of the non-interest-bearing asset. Crude oil prices extended losses, with WTI futures falling below USD 64 per barrel and Brent futures slipping below USD 67 per barrel as traders assessed US stockpile data and monetary policy changes.

The US dollar index initially dropped to 96.224, its lowest since February 2022, immediately after the Fed announcement but later recovered to 97.074. The Indian rupee also appreciated against the US dollar, supported by strong DII flows and positive sectoral cues.

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Disclaimer: The article is for informational purposes only and not investment advice.